CLOVER: $14.6M Rev/$2.2M Adj EBITDA Turf Application & Landscape Co (2022)
"CLOVER," an eastern USA based residential and commercial chemical application and landscape company enjoys healthy EBITDA margins of 15%+. This multi-location company generates revenue from lawn and shrub chemical applications for nourishment and weed control, as well as, landscaping services. Landscaping includes design & maintenance, mowing, snow removal, tree pruning & removal. Landscape maintenance services include edging, mulching, and perennial cutbacks.
Breakdown of revenue by services (2022):
- Lawn care applications $6,549,842
- Landscape maintenance $2,756,179
- Landscape design $2,637,731
- Tree & shrub application $1,488,759
- Pruning & removal $955,412
- Snow $171,967
CLOVER serves a diverse customer base of residential and commercial clients. Lawn application services are 65% residential and 35% commercial. The Company serves 8,000+ customers with 4-6 chemical applications annually. Landscaping services is tailored more towards commercial clientele but will also service a few residential properties. CLOVER employs a fully e-verified workforce across its two locations.
The 70-year owner seeks a full sale. He is minimally involved in the day-to-day operations as he has an independent management team including, general management, finance, sales and operations. Equipment is fully updated and in excellent working condition.
CLOVER seeks a humble buyer with experience in chemical applications and landscaping businesses. We will entertain both financial and strategic suitors. The owner will be fully cashing out but expects a few of his key managers to participate in ownership if the opportunity is extended. There is plenty of room for growth organically and through strategic acquisitions in the local market and major surrounding MSAs.
The Company operates out of two facilities in the Eastern U.S. with approx 48,000 s.f. of outbuildings.
Market Outlook / Competition
The U.S. landscaping services market is $177 billion in 2023 and has grown 8.1% per year on average over the past five years. Growth is driven by enhanced property values from having well-manicured lawns and quality curb appeal. The overall landscaping market is highly fragmented with thousands of businesses providing services covering commercial and residential markets including design, maintenance, enhancements, chemical applications, tree & shrub, and snow removal.
While there are many landscaping providers within CLOVER’s market, the Company developed a stellar brand reputation over the course of several decades. Given CLOVER’s heavier focus on lawn care and chemical applications, they do not face as much competition compared to commercial maintenance and design services. In fact, they are one of the largest privately-owned and non-franchised applications business in its market and enjoys a customer retention rate of greater than 90%. Customers expect quality services and healthy looking lawns when using CLOVER, and the Company delivers.